Institutional Client Services net revenues (excluding DVA impact and the
sale of the reinsurance business in 2013) increased 23% sequentially,
but was down 11% from 1Q'13. Fixed income net revenues (excluding DVA)
improved 50% from 4Q'13, but was 13% lower than 1Q'13. The increase was
driven by higher market activity in commodities, rates and mortgages.
Equities decreased 7% from 1Q'13(excluding the sale of Goldman's
reinsurance business) as a result of less favorable market conditions
primarily in Japan and certain emerging markets. Trading value at risk
(VaR) of $82 billion was virtually unchanged from 4Q'13.

Investment banking revenues of $1.8 billion were 4% higher than 4Q'13
driven by strong advisory business. Underwriting revenues were down 3%
QoQ and virtually unchanged year-over-year (YoY). Debt underwriting
revenues were up 29% from 4Q'13 due to an increase in investment grade
and leveraged finance activity. Lower equity underwriting revenues were
due to fewer IPOs during 1Q'14, which is consistent with industry
volumes. The backlog for investment banking remains strong and Goldman
should benefit from increased activity.

Investing and lending revenues decreased 26% both QoQ and YoY. Net
revenues for equity securities declined 50% from a strong 4Q'13. Debt
securities and loan, however, benefitted from higher gains on
investments and net interest income. Asset management revenues of $1.5
billion were unchanged sequentially, but up 20% YoY. Assets under
supervision increased to a record $1.08 trillion, due to net inflows and
market appreciation.

Over the past several years, Goldman has consistently maintained
liquidity at conservative levels. Global core excess liquidity,
including unencumbered, highly liquid securities and cash, was a solid
$175 billion or 19% of total assets at 1Q'14.

Goldman estimated that its Tier 1 common ratio under Basel III advanced
approach at 1Q'14 was 11.3% on a transitional basis, comfortably above
the 8.5% minimum and above Goldman's target of 9.5%. Goldman estimated
that its supplementary leverage ratio (SLR) under the rules recently
proposed by the Federal Reserve was approximately 4.2% for the holding
company, below the minimum threshold of 5%. Under the new proposal, the
holding company SLR was negatively impacted by the CDS add-on and
collateralized assets associated with customer activity. Furthermore,
fund investments, which Goldman is required to reduce as part of the
Volcker Rule, continue to negatively impact the SLR. Goldman estimates
that harvesting these fund investments should improve the holding
company SLR by approximately 50 basis points. Goldman estimated that the
Goldman Sachs Bank USA's SLR was 5.6% at 1Q'14, below the minimum
threshold of 6%. Fitch believes that Goldman will be able to meet the
supplementary leverage minimums ahead of implementation deadline in 2018.

During 1Q'14, as part of Goldman's share repurchase program, $1.72
billion of common shares were repurchased. Goldman received a no
objection to its capital request under CCAR but only after it revised
its submission.

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND
DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING
THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS.
IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE
AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'.
PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS
SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS
OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES
AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF
THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE
RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR
RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY
CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH
WEBSITE.